What is the balance of the stock investments account on

Reference no: EM13483363

Rosen Company purchased 35,000 shares of common stock of Corporation as a long-term investment for $800,000. During the year, Polo Corporation reported net income of $400,000 and paid dividends of $150,000. Instructions (a) Assuming that the 35,000 shares represent a 10% interest in Polo Corporation:

1. Prepare the journal entry to record the investment in Polo stock.

2. Prepare any entries that Rosen Company should make in accounting for its investment in Polo stock during the year.

3. What is the balance of the Stock Investments account on Rosen Company's books at the end of the year? (b) Repeat requirement (a) above except assume that the 35,000 shares represent a 20% interest in Polo Corporation.

Reference no: EM13483363

Questions Cloud

In all respects company a and company b are identical : in all respects company a and company b are identical except that company as costs are mostly variable whereas company

The companys variable costs per unit and total fixed costs : nesman company which has only one product has provided the following data concerning its most recent month of

Samson wholesale beverage company regularly factors its : samson wholesale beverage company regularly factors its accounts receivable with the milpitas finance company. on april

During march 200000 units were started work in process at : orioles co. began march with no work in process in its first department. during march the following production costs

What is the balance of the stock investments account on : rosen company purchased 35000 shares of common stock of corporation as a long-term investment for 800000. during the

The most appropriate discount rate to use when applying a : 1. the most appropriate discount rate to use when applying a fcfe valuation model is the .required rate of return on

The research department has developed a new product c as a : roland company operates a small factory in which it manufactures two products a and b. production and sales result for

The company expects to earn 15 percent before interest and : the calgary company is attempting to establish a current assets policy. fixed assets are 600000 and the firm plans to

The common costs will be incurred regardless of how many : cawley company makes three models of tasers. information on the three products is given

User Account

All Pages